Ceramic Protection Corporation - Record Fourth Quarter Results
AMAZING RESULTS 38 CENTS FOR THE YEAR. P/E OF 11
Exchange: TSX Venture
CALGARY, Jan. 30 /CNW/ -
Financial Results
The unaudited financial results for the fourth quarter ended October 31,
2003 are summarized as follows:
<<
Three Months Twelve Months
Ended Ended
Thousands, except Ended October 31 % Ended October 31 %
per share figures) 2003 2002 Change 2003 2002 Change
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Revenue $3,561 $1,556 129 $17,011 $4,781 256
Gross Profit 1,506 353 327 4,637 1,344 245
Net Income (Loss) 981 (62) N/A 2,576 (173) N/A
Cash Flow 1,073 33 3,252 2,957 211 1,301
Net Income (Loss) per
Share 0.14 (0.01) N/A 0.38 (0.03) N/A
Cash Flow per Share 0.15 0.00 N/A 0.43 0.03 1,333
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>>
Operations Review
The fourth quarter ended October 31, 2003 was the most profitable quarter
in the history of the Corporation. Armour sales of $3,362,000 were realized in
the fourth quarter, a 195% increase over the comparable period in 2002. Total
revenue was $17,011,000 for the year ended October 31, 2003. This compares
favourably with the $4,780,000 recorded in the prior year, a 256% increase.
Sales of bonded and bare ceramic plates accounted for the majority of the
armour product sales and new orders were received from customers in the USA,
Australia, South America and Israel. The Corporation continues to actively
pursue other significant personnel armour orders, including the Ceramic Armour
on Patrol (CAP) system for police applications. The Corporation's vehicular
armour development program for potential police vehicle applications was
strengthened during the fourth quarter when the National Research Council
agreed to further assist the research and development funding through IRAP.
Sales of polyethylene personnel body armour purchased from a supplier and
distributed within the USA remained strong, accounting for 22% of total armour
sales in the fourth quarter.
Sales of wear management products were $199,000 in the quarter, down from
the $416,000 recorded in the fourth quarter of 2002. The Corporation continued
the development of a ceramic-lined choke valve designed for steam assisted
gravity drainage (SAGD) heavy oil production.
Financial Review
Revenues for the three months ended October 31, 2003 were $3,561,000, an
increase of 129% over the same period of the prior year. Gross profit for the
period was $1,506,000 as compared to $353,000 reported in the same period in
2002, an increase of 327%. The Corporation's general and administrative,
interest and depreciation expenses were $448,000 during the three months ended
October 31, 2003 as compared to $432,000 during the same period of the prior
year. Net income was $981,000 as compared to a loss of $62,000 for the fourth
quarter ended October 31, 2002. The significant increase in net income was a
result of much stronger armour sales and increased margins. A foreign currency
exchange loss of $85,000 was recorded in the fourth quarter. Net income per
share for the three months ended October 31, 2003 was $0.14 versus a loss of
$0.01 in 2002. Net income for the twelve month period ended October 31, 2003
was $0.38 per share compared to a loss of $0.03 per share in the prior year.
Outlook
The Corporation has experienced strong demand for its products during the
past year. The international marketplace continues to require the products
offered by the Corporation and it is expected that, at a minimum, demand and
sales will remain strong for the near term. The Corporation is also
anticipating growth in the longer term through sales in the vehicular armour
segment of the marketplace.
Business Environment and Risks
The Corporation continues to maintain a base of customers while competing
for contracts in a competitive technical marketplace. Marketing efforts to
increase the Corporation's visibility and sales include the use of internal
sales personnel and external agents as well as offering training courses in
ballistic protection technology. The Corporation is responding to market
demand for improved materials and alliance partners are used to bring products
to market quickly with minimal capital investment from CPC. Much of the
Corporation's revenue is derived from international contracts which are bid in
US currency. The Corporation must react quickly to market demands by
constantly adjusting production levels to meet supply requirements. World
economic, military and political factors affect the number and size of
contracts available for bid.
Business of the Company
Ceramic Protection Corporation of Calgary, Alberta, Canada is an ISO 9002
certified manufacturer and distributor, providing products for the industrial
wear management and ballistic protection marketplace in both personnel and
vehicular armour systems. Since its inception, the Corporation has become a
leading supplier of products for ballistic protection in the vehicular and
personnel armour sectors. The Corporation's wear-resistant materials are used
in mining, oil and gas production, oil sands processing and other industrial
applications throughout North America.
Ceramic Protection Corporation of Calgary, Alberta is listed on the TSX
Venture Exchange as "CEP".
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/For further information: Dr. Ron Wallace, Chief Executive Officer, Tel:
(403) 250-1007, Mr. Larry Moeller, Chairman, Board of Directors, Tel: (403)
221-8155/ |
